Building on the back of Bitcoin’s security, transparency, and decentralization and upgrading it with DeFi features DeFiChain intends on bringing Decentralized Finance to individuals around the world. Now, the crypto-ecosystem’s services are being expanded to include four new dTokens.
DeFiChain adds Mickey Mouse’s House and more
With the Ticker Voting, the community agreed to add the new tokens that can be minted and traded on the DeFiChain platform. The four new tokens added are $dDIS – Walt Disney Co, $dMCHI – iShares MSCI China ETF, $dMSTR – MicroStrategy Incorporated, and $dINTC – Intel Corporation.
As a solution to this problem, DeFiChain issues these dTokens, which give investors exposure to the asset they choose to invest in without actually investing. The dTokens basically track the price of the security without actually collaterizing it with the underlying security.
Owning these dTokens, however, does not provide the user with an ownership stake in the company such as traditional shares do. These tokens are purely for investment purposes.
Thus, By combining traditional finance with the decentralized capabilities of cryptocurrency, DeFiChain provides a hybrid solution for investors that like to keep a foot in both boats. Iterating the same, the Lead Engineer at DeFiChain, Prasanna Loganathar, stated,
“DeFiChain is continuously expanding the dToken universe to give users a serious alternative to the traditional financial broker – all whilst offering the flexibility and benefits of decentralization.”
The future of investment in securities?
Since DeFiChain in many ways releases investors from the political and bureaucratic tether, it can be understood why there is so much demand for these tokens. Although, beyond just investment these dTokens can also be traded and transferred to anyone around the world.
In fact by simply depositing Bitcoin, USDC, USDT, and other valid assets as collateral, DeFiChain users can liquidity mine on the DeFiChain DEX.
Globally, this provides an entire new market for investors who would like to acquire tokens whose prices reflect securities such as Tesla, Apple, Alibaba, GameStop, Nvidia, Amazon, Microsoft, Netflix, Meta, and so on.
However, while the prospect of DeFi is very appealing, the risks associated with it must not be taken lightly. Just last month, the Axie Infnity’s Ronin bridge witnessed an exploit of $625 million which became the biggest known hack in the history of crypto.
Furthermore, the regulations around cryptocurrencies and investment in digital assets of all sorts also create hindrance for tokens such as dTokens.
A few days after the EU’s ‘proof of work ban’ was defeated, the EU Parliament after the ECON-LIBE voting session passed the bill which will place self-hosted wallets at the brink of extermination. According to the bill, crypto service providers will be forced to reveal the identities of the wallets’ hosts.
Hence, investors should always watch for any developments that could affect their investments.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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